Nintendo Reports Financial Losses for 2013/2014

Nintendo has reported financial losses for the 2013 / 2014 year, which have brought losses as were projected by the company in its Q3 report.

In addition, only 3.6 million Wii U hardware sales are expected in the current year. Covering 1st April 2013 to 31st March 2014, Nintendo has a net income loss of over 23.2 billion Yen, (around $229 million / £135 million / €164 million). The core business of making and selling products brings the company to an operating loss of 46.4 billion Yen, ($457 million / £269 million / €328 million); this is a fair leap over the estimated 35 billion Yen operating loss projected in January. The financial report says the following regarding the figures.

The “Wii U” hardware still has a negative impact on Nintendo’s profits owing mainly to its markdown in the United States and Europe, and unit sales of software, which has high profit margins, did not grow sufficiently, leading to a gross profit of 163.2 billion yen. Total selling, general and administrative expenses exceeded gross profit, resulting in an operating loss of 46.4 billion yen. Also, due to depreciation of the yen at the end of this period compared with the one at the end of the last fiscal year, exchange gains totalled 39.2 billion yen, leading to an ordinary income of 6.0 billion yen. On the other hand, mainly due to the balance of deferred tax assets reduced in relation to the losses carried over in the United States, there is a net loss of 23.2 billion yen.